It’s never too early to start a conversation about money. We talk about it every day, whether we’re budgeting for groceries, planning a holiday, or saving up for something special. We can even ease any financial stress or burdens by having 3-6 months of our salary or core costs (bills etc), saved. So why is talking to our children about money sometimes seen as a difficult or awkward topic? Michael Flack, CEO of WizeUp Financial Education outlines some simple ways to help.
The truth is, building a healthy relationship with money starts with simple, open conversations. When we teach children about savings from a young age, we’re not just giving them a skill—we’re giving them confidence and a sense of control over their financial future. It’s about setting them on a path toward lifelong financial wellbeing, one small step at a time.
Making it Simple and Fun
One of the easiest ways to introduce the concept of saving is through pocket money, no matter how small or large. This isn’t just a weekly handout; it’s a chance to teach them about budgeting, spending, and saving. A simple piggy bank or a few labelled jars can make the process visual and engaging. You can create different jars for “Spending,” or “Saving,”, and let them decide how to divide their money. This hands-on approach helps them understand the difference between immediate wants and future goals. Once our children start to save within their jars or piggy banks, we can then explain the concept of getting money to work for them, that’s how we can slowly introduce the concept of interest and how that can add to our total amount. It starts the transition to a more formal way of saving.
Another great way to teach is by leading by example. Next time you’re at the supermarket, talk to them about how you’re comparing prices to get the best value, or why you’re using your loyalty card. These small moments show them that saving is a normal, everyday part of life. You can also talk about the difference between a “need” and a “want.” When they want a new toy, ask them if it’s something they need or if it’s something they can save up for. This helps them develop patience and delayed reward.
Setting Goals and Watching Them Grow
The real magic happens when children start saving for a specific goal. Whether it’s a new video game, a trip to the cinema, or a bigger treat they’ve had their eye on, having a clear target makes saving feel purposeful and rewarding. Celebrate with them when they reach their goal. That feeling of accomplishment is what will motivate them to continue saving in the future.
In the end, it’s not about how much children save, but about building the habit. By making saving a part of everyday life and keeping the conversation simple, you can help the next generation become confident and responsible savers. Besides, it’s also never too late for us to review our own saving methods!
You can find out more about saving and other financial topics, by heading to www.wizeupfinancialeducation.co.uk
